May 09, 2024
Stocks & Bonds
Floating money in stock market rises steadily
[THE INVESTOR] Money floating around the Korean stock market has grown steadily this year as investors are parking funds in short-term equity-related vehicles, data showed on May 26.
The amount of money sitting idle around the local equity market came to 298 trillion won (US$266 billion) as of Thursday, up 12.4 percent from the end of 2016, according to the data by the Korea Financial Investment Association.
The figure includes 23.6 trillion won in investor deposits and 71.2 trillion won in repurchase agreement balances. In particular, deposits at money market funds reached 135.7 trillion won, up a whopping 30 percent from the end of last year.
The association said investors had been drawn to stock-related short-term investment vehicles amid the local financial market uncertainty triggered by a massive corruption scandal involving former President Park Geun-hye, the US presidential election and South Korea‘s May 9 snap presidential poll.
Another driver is the recent bull run of the stock market that has prompted investors to rush to load up on stocks, it added.
By Alex Lee and newswires (alexlee@heraldcorp.com)
The amount of money sitting idle around the local equity market came to 298 trillion won (US$266 billion) as of Thursday, up 12.4 percent from the end of 2016, according to the data by the Korea Financial Investment Association.
The figure includes 23.6 trillion won in investor deposits and 71.2 trillion won in repurchase agreement balances. In particular, deposits at money market funds reached 135.7 trillion won, up a whopping 30 percent from the end of last year.
The association said investors had been drawn to stock-related short-term investment vehicles amid the local financial market uncertainty triggered by a massive corruption scandal involving former President Park Geun-hye, the US presidential election and South Korea‘s May 9 snap presidential poll.
Another driver is the recent bull run of the stock market that has prompted investors to rush to load up on stocks, it added.
By Alex Lee and newswires (alexlee@heraldcorp.com)
